(raw materials / closing price /% change)

Light Crude 55.51 +0.45%

Gold 1,176.50 -0.28%

(index / closing price / change items /% change)

Nikkei 225 17,635.14 +13.74 +0.08%

Hang Seng 23,408.57 +291.94 +1.26%

Shanghai Composite 3,127.44 +18.85 +0.61%

FTSE 100 6,576.74 +31.47 +0.48%

CAC 40 4,254.43 +12.78 +0.30%

Xetra DAX 9,865.76 +78.80 +0.81%

S&P 500 2,078.54 +7.89 +0.38%

NASDAQ Composite 4,781.42 +16.04 +0.34%

Dow Jones 17,959.44 +154.64 +0.87%

(pare/closed(GMT +2)/change, %)

EUR/USD $1,2229 +0,02%

GBP/USD $1,5589 -0,27%

USD/CHF Chf0,9836 -0,05%

USD/JPY Y120,05 +0,43%

EUR/JPY Y146,80 +0,46%

GBP/JPY Y187,13 +0,17%

AUD/USD $0,8133 -0,07%

NZD/USD $0,7727 -0,22%

USD/CAD C$1,1626 +0,18%

(time / country / index / period / previous value / forecast)

00:00 Japan Bank holiday

02:00 China Leading Index November +0.9%

07:45 France Consumer spending November -0.9% +0.2%

07:45 France Consumer spending, y/y November -0.2%

07:45 France GDP, q/q (Finally) Quarter III -0.1% +0.3%

07:45 France GDP, Y/Y (Finally) Quarter III +0.8%

09:30 United Kingdom Current account, bln Quarter III -23.1 -21.1

09:30 United Kingdom BBA Mortgage Approvals November 37.1 37.3

09:30 United Kingdom GDP, q/q (Finally) Quarter III +0.7% +0.7%

09:30 United Kingdom GDP, y/y (Finally) Quarter III +3.0% +3.0%

09:30 United Kingdom Business Investment, q/q (Finally) Quarter III -0.7% -0.7%

09:30 United Kingdom Business Investment, y/y (Finally) Quarter III +6.3% +6.3%

13:30 Canada GDP (m/m) October +0.4% +0.1%

13:30 U.S. PCE price index, q/q Quarter III +2.2%

13:30 U.S. PCE price index ex food, energy, q/q Quarter III +1.4%

13:30 U.S. Durable Goods Orders November +0.3% Revised From +0.4% +3.0%

13:30 U.S. Durable Goods Orders ex Transportation November -1.1% Revised From -0.9% +1.1%

13:30 U.S. Durable goods orders ex defense November -0.6%

13:30 U.S. GDP, q/q (Finally) Quarter III +3.9% +4.3%

14:00 Belgium Business Climate December -6.1 -5.8

14:00 U.S. Housing Price Index, m/m November 0.0% +0.3%

14:00 U.S. Housing Price Index, y/y November +4.3%

14:55 U.S. Reuters/Michigan Consumer Sentiment Index (Finally) December 93.8 93.5

15:00 U.S. Richmond Fed Manufacturing Index December 4 8

15:00 U.S. New Home Sales November 458 461

15:00 U.S. Personal Income, m/m November +0.2% +0.6%

15:00 U.S. Personal spending November +0.2% +0.5%

15:00 U.S. PCE price index ex food, energy, m/m November +0.2% +0.1%

15:00 U.S. PCE price index ex food, energy, Y/Y November +1.6%

21:30 U.S. API Crude Oil Inventories December +1.9

23:00 Australia Conference Board Australia Leading Index October -0.3%

Crude oil fell, extending a fourth weekly decline on concern OPEC's refusal to cut production will worsen a global glut.

Saudi Oil Minister Ali Al-Naimi said OPEC's biggest producer will seek to maintain market share and that global demand growth this year was slower than expected. Iraq plans to boost its production next year, Oil Minister Adel Abdul Mahdi said. Trading volatility stayed at the highest level in more than three years.

"Saudi Arabia is not willing to give up market share," said Kyle Cooper, director of commodities research at IAF Advisors in Houston. "With the U.S. production trajectory intact certainly in the next few months, it's going to be a fight. It certainly looks like oil is heading toward $50."

Oil has slumped about 21 percent since OPEC decided against cutting its production target last month, prompting a plunge in the value of currencies from the Russian ruble to the Norwegian krone. Prices have tumbled by half since June amid surging production and slower-than-expected demand growth. Output in the U.S. is the highest in three decades.

Brent for February settlement dropped 77 cents, or 1.3 percent, to $60.61 a barrel at 10:57 a.m. New York time on the London-based ICE Futures Europe exchange. The volume of all futures was 23 percent below the 100-day average. The European benchmark crude traded at a premium of $4.65 to West Texas Intermediate. Prices have fallen about 45 percent this year, set for the largest drop since 2008.

WTI for February delivery fell $1.27, or 2.2 percent, to $55.86 on the New York Mercantile Exchange with volume 2.1 percent above the 100-day average. The U.S. benchmark is down about 43 percent this year.

Gold prices have dropped significantly in the past few hours after rising earlier in the session. The fall in prices is partly due to the release of data on the US housing market, which disappointed the markets.

Sales of existing homes in November fell to a six-month low. This is a sign that the housing market continues to lag, despite the surge in employment and accelerate economic growth.

As reported on Monday the National Association of Realtors, sales of existing homes fell in November by 6.1% compared to the previous month and adjusted for seasonal variations totaled 4.93 million homes a year. This is the lowest level since May.

According to revised data, in October sales rose to 5.25 million homes a year. This is slightly lower than the initial value of 5.26 million homes for a year, but, nevertheless, it is the highest level this year.

Economists had expected sales in November reached 5.21 million homes a year. Compared to the same period of the previous year, sales in November increased by 2.1%.

This week, the reduction due to the Christmas holidays, analysts predict trading in a narrow range.

"It is unlikely that investors will enter the market at this time of year, but liquidity is so small that if you need to perform any orders, the impact will be significant. My prediction for 2015 is very pessimistic ... If investors are willing to take risks, and at the same while rising interest rates and the dollar, gold will not be able to grow, "- said ABN Amro analyst Georgette Bёle.

In China, gold in early trading on the proposed $ 3 more per ounce spot price in London, and later the margin was reduced to $ 1.

On Tuesday, the market expects the US several economic reports, including the GDP of the third quarter.

The cost of the February gold futures on the COMEX today fell to 1186.60 dollars per ounce.

U.S. stock-index futures climbed amid investor optimism that the Federal Reserve will continue to support the economy.

Global markets:

Nikkei 17,635.14 +13.74 +0.08%

Hang Seng 23,408.57 +291.94 +1.26%

Shanghai Composite 3,128.7 +20.10 +0.65%

FTSE 6,604.14 +58.87 +0.90%

CAC 4,266.99 +25.34 +0.60%

DAX 9,889.35 +102.39 +1.05%

Crude oil $56.69 (-0.79%)

Gold $1196.70 (+0.06%)

(company / ticker / price / change, % / volume)

Upgrades:

Downgrades:

Other:

Nike (NKE) target raised to $101 from $96 at DA Davidson

FedEx (FDX) target raised to $195 from $175 at Argus

EUR/USD: $1.2250(E400mn), $1.2300(E440mn), $1.2400(E409mn), $1.2450(E1.5bn)

USD/JPY: Y118.50($1.4bn), Y119.50($2.55bn)

EUR/GBP: stg0.7870(E200mn)

USD/CHF: Chf0.9650($200mn)

NZD/USD: $0.7680(NZ$300mn)

USD/CAD: C$1.1500($2.0bn)

EUR/USD

Offers $1.2380, $1.2340-50, $1.2305/00

Bids $1.2220, $1.2200

GBP/USD

Offers $1.5800, $1.5785, $1.5700

Bids $1.5585, $1.5540

AUD/USD

Offers $0.8300, $0.8250, $0.8200

Bids $0.8100, $0.8050, $0.8000

EUR/JPY

Offers Y148.50, Y148.00, Y147.50, Y147.00

Bids Y146.00, Y145.50, Y145.00

USD/JPY

Offers Y121.20, Y121.00, Y120.50, Y120.00

Bids Y119.00, Y118.50, Y118.00

EUR/GBP

Offers stg0.7950/55, stg0.7900, stg0.7880/85, stg0.7860

Bids stg0.7800, stg0.7700

European indices added to early session gains being positive for a fifth consecutive day. Markets were lifted by rising energy shares profiting as oil prices reversed a slump in the price over the last month. Markets were also supported by Greek Prime Minister Samaras inviting independent pro-Europe members of the parliament into the government. If the parliament does not choose a new president by December 29^th elections will be held in February putting bailout negotiations at risk.

In today's session the FTSE 100 index added +0.78% quoted at 6,596.25 points, France's CAC 40 gained +0.97% trading at 4,282.95. Germany's DAX 30 is currently trading +0.99% at 9,884.21 points.

Brent crude and West Texas Intermediate are trading higher today, rebounding from 5-1/2 year lows hit last week, after Saudi Arabia's oil minister Ali Al-Naimi said on Sunday that lower prices would help demand and spur economic growth and his colleague from the United Arab Emirates demanded production cuts outside the OPEC as he blamed other producers of harming the market with overproduction. According to Bloomberg daily production rose by more than 2 million barrels a day since January 2013.

Brent Crude added +1.19%, currently trading at USD62.11 a barrel and further recovered from lows below USD60 now trading above USD62. Crude hit a low at USD58.50 last week. West Texas Intermediate rose +0.88% currently quoted at USD57.63.

Gold prices slightly recovered today trading below the important level of USD1200 again as the broadly weaker U.S. dollar supported the precious metal but rallying stock markets put further pressure on gold. Last month it reached a four-year low at USD1,131.70 - at the current level gold is almost flat for the year as the precious metal declined from highs in march at USD1,387.70. Trading volumes are expected to be low this week which could lead to volatile and erratic markets. The precious metal is currently quoted at USD1,196.20, +0,20% a troy ounce.

On Wednesday the Fed has indicated that it may raise interest rates next year, replacing the intention to keep them close to zero level "extended period" of time for a promise to show "patience" before making a decision to raise the cost of borrowing.

Gold, which does not bring interest income, it is possible hardly compete with other assets yielding interest, when interest rates rise. In addition, higher interest rates are likely to have support for the US dollar, which also have a negative impact on the situation of dollar-denominated metal.

GOLD currently trading at USD1,196.20

GOLD currently trading at USD1,196.20

EUR/USD: $1.2250(E400mn), $1.2300(E440mn), $1.2400(E409mn), $1.2450(E1.5bn)

USD/JPY: Y118.50($1.4bn), Y119.50($2.55bn)

EUR/GBP: stg0.7870(E200mn)

USD/CHF: Chf0.9650($200mn)

NZD/USD: $0.7680(NZ$300mn)

USD/CAD: C$1.1500($2.0bn)

BLOOMBERG
Draghi Starts Squaring QE Circle in Month of Persuasion

Mario Draghi has one month to win consensus on quantitative easing by showing he won't endanger the ECB.

As officials prepare to consider sovereign-bond purchases on Jan. 22, the ECB president is working to get as many policy makers and as much of the public on his side as possible. One concession being debated is to require national central banks to be responsible for at least some of their own credit risk, according to people familiar with the talks.

Source: http://www.bloomberg.com/news/2014-12-22/draghi-starts-squaring-qe-circle-in-month-of-persuasion-for-ecb.html

BLOOMBERG

Putin's Secret Gamble on Reserves Backfires Into Currency Crisis

Kremlin insiders gathered in secret last February to answer a crucial question for Vladimir Putin: Could Russia afford the economic blowback from taking over Crimea?

Moscow said yes.

Markets aren't so sure.

As President Putin exulted at the Winter Olympics in Sochi 10 months ago, aides assured him Russia was rich enough to withstand the financial repercussions from a possible incursion into Ukraine, according to two officials involved in the talks.

Source: http://www.bloomberg.com/news/2014-12-17/putin-s-secret-gamble-bet-on-ukraine-backfires-in-ruble-crisis.html

REUTERS
Euro edges up, still shaky on ECB and Greece

(Reuters) - The euro bounced back from two-year lows against a slightly weaker dollar on Monday, with Greece's presidential election and a batch of U.S. data on Tuesday the chief risks to a calmer holiday mood.

The Australian dollar, up 0.3 percent, was the chief beneficiary of a recovery in oil prices that has seen Brent Crude move almost 7 percent higher from last week's more than five-year lows.

The outlook into 2015 for the euro looks weak, with Luc Coene the latest European Central Bank policymaker to point the way towards outright buying of government bonds to stimulate a still moribund euro zone economy.

Source: http://www.reuters.com/article/2014/12/22/us-markets-forex-idUSKBN0K000720141222

European indices continued to rise for a fifth day amid a global end-of-year rally tracking gains in Asian and U.S. markets as volumes thin out near the end of the year. Markets are supported by gains in the energy sector as oil prices recover. Markets await data on Eurozone's Consumer Confidence and U.S. Existing Home Sales.

The FTSE 100 index is currently trading +0.92% quoted at 6,605.27 points, Germany's DAX 30 added +0.64% trading at 9,849.34. France's CAC 40 rose by +1.14%, currently trading at 4,289.91 points.

U.S. markets closed higher on Friday for a third session as energy shares rebounded. The DOW JONES added +0.15% closing at 17,804.80 points, the S&P 500 gained +0.46% with a final quote of 2,070.65. Last week markets were broadly supported by the FED's "patient" approach to hike benchmark interest rates.

Hong Kong's Hang Seng added +1.26% to 23,408.02 points. China's Shanghai Composite closed at 3,128.70 points, a gain of +0.65% erasing some of its early gains retreating from new highs.

Japan's Nikkei added +0.08% closing at 17,635.14 at a two-week highs as a rise in oil prices supported energy stocks and weighed on airlines.

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual

05:00 Japan BoJ monthly economic report

The greenback traded weaker against its major peers in Asian trade but continues to be supported by the FED's decision not to raise interest rates before April 2015 while other major countries are likely to maintain monetary stimulus. The U.S. dollar lost against the euro after rising to USD1.2219, the highest since August 2012. Today markets await data on Eurozone's Consumer Confidence and U.S. Existing Home Sales.

The Australian dollar booked gains against the U.S. dollar after last week's slump on Wednesday with new lows at USD0.8106, the weakest since 2010.

New Zealand's dollar lost against the greenback for a second day after the Westpac Consumer Sentiment declined from 116.7 to 114.8 in the fourth quarter. Markets await publication of New Zealand's Trade Balance due 21:45 GMT.

The Japanese yen traded slightly weaker during the Asian session after Bank of Japan's monthly economic report and before tomorrow's bank holiday.

EUR/USD: the euro added against the greenback

The most important news that are expected (GMT0):

(time / country / index / period / previous value / forecast)

15:00 Eurozone Consumer Confidence December -12 -11

15:00 U.S. Existing Home Sales November 5.26 5.21

21:45 New Zealand Trade Balance, mln November -908 -550

EUR / USD

Resistance levels (open interest**, contracts)

$1.2345 (716)

$1.2305 (297)

$1.2267 (213)

Price at time of writing this review: $ 1.2253

Support levels (open interest**, contracts):

$1.2198 (2261)

$1.2164 (6976)

$1.2140 (2893)

Comments:

- Overall open interest on the CALL options with the expiration date January, 9 is 53086 contracts, with the maximum number of contracts with strike price $1,2500 (6374);

- Overall open interest on the PUT options with the expiration date January, 9 is 61261 contracts, with the maximum number of contracts with strike price $1,2000 (7360);

- The ratio of PUT/CALL was 1.16 versus 1.18 from the previous trading day according to data from December, 19

GBP/USD

Resistance levels (open interest**, contracts)

$1.5901 (2044)

$1.5803 (2115)

$1.5706 (2450)

Price at time of writing this review: $1.5647

Support levels (open interest**, contracts):

$1.5591 (955)

$1.5495 (1691)

$1.5397 (898)

Comments:

- Overall open interest on the CALL options with the expiration date January, 9 is 23776 contracts, with the maximum number of contracts with strike price $1,5850 (4125);

- Overall open interest on the PUT options with the expiration date January, 9 is 19171 contracts, with the maximum number of contracts with strike price $1,5550 (1939);

- The ratio of PUT/CALL was 0.81 versus 0.78 from the previous trading day according to data from December, 19

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.